“I’d move, but not with a mortgage payment.”
Can I buy my next home with no monthly mortgage payment?
If you’re 62 or older, often yes. Sell the big house, use part of the money as the down payment on the next one, and keep the rest. There’s no monthly mortgage payment. You still pay property taxes, insurance and upkeep, and you live in the home. If not, the lender can ask for the loan to be paid back. Counseling comes first.
Quick answers
Would move, but not with a payment?
The sale pays the down payment. A reverse mortgage pays the rest. No monthly mortgage payment. You still pay taxes, insurance and upkeep.
Need the sale money to live on?
Part of it buys the next home. You keep the rest. Interest adds to the loan, and it’s paid from the home when you sell or move out. No one owes more than the home is worth.
Big house, stairs, upkeep?
Sell it. Buy the one-story near the kids. No monthly mortgage payment, and less to keep up. You still pay taxes, insurance and upkeep.
Does it fit you?
4 quick questions. No signup. No credit pull.
What you'll need
- Proof of age (62 or older)
- Your current home’s value and mortgage balance
- A rough price for the next home
- A counseling session with a HUD-approved counselor (we’ll explain how)
What are the steps?
How does buying with a reverse mortgage work?
You sell your current home. Part of the money goes in as a large down payment on the next one, and a reverse mortgage pays the rest of the price. You keep what’s left from the sale.
There’s no monthly mortgage payment, as long as you live in the home and keep paying property taxes, insurance and upkeep.
Who is it for?
Homeowners 62 and up who want a home that fits this part of life. A one-story home, less yard to keep up, a place near the kids.
It has to be your main home. You’ll need a large down payment, usually from selling the home you own now.
What do I have to keep up?
You live in the home, pay property taxes, homeowners insurance and any HOA dues, and keep the home in good repair. If those stop, the lender can ask for the loan to be paid back.
A loan officer goes over all of it before you apply, and so does your counselor.
Is this the same as a regular reverse mortgage?
It’s the same kind of loan, used to buy a home instead of staying put. You may hear it called a HECM for Purchase.
Questions people ask
Do I still own the home?
Yes. The home is in your name. You live in it, keep it up, and pay property taxes and insurance, or the loan comes due.
What happens for my kids?
Interest adds to the loan. It’s paid from the home when the last borrower sells, moves out or passes. Your heirs can keep the home by paying off the loan, or sell it and keep what’s left. No one owes more than the home is worth.
How much of my sale goes into the new home?
Your age, the price and today’s rates set it. The older you are, the less you put down. A loan officer can run your number.
What does it cost?
There are upfront costs, including mortgage insurance. A loan officer shows every cost before you decide.
Why is counseling required?
It makes sure you understand how the loan works before you sign. It’s a short session with an independent counselor.
Does it have to be my main home?
Yes. You have to live there as your main home. It can’t be a rental or a vacation home.
Do I pay anything back while I live there?
You have no monthly mortgage payment, and you still pay property taxes, insurance and upkeep. The loan is paid back from the home when the last borrower sells, moves out or passes.
Are there California rules for reverse mortgages?
Yes. Before counseling, you get the state’s reverse mortgage worksheet guide to go over with your counselor. After counseling, the lender must wait seven days before taking your final application or charging fees.
Does Home First Financial offer reverse mortgages to buy a home in California?
Yes. Home First Financial helps California homeowners 62 and up use a reverse mortgage to buy their next home. You have no monthly mortgage payment, and you still pay property taxes, insurance and upkeep, or the loan comes due. Counseling is required. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
Reverse mortgage financing, age 62 and up for a HECM. Owners must live in the home and keep up taxes, insurance, dues and upkeep, or the loan comes due. Counseling required. A large down payment is required. Interest, FHA mortgage insurance and fees add to the loan, so the balance grows and the equity left in the home shrinks. It is paid from the home when the last borrower sells, moves out or passes. No one owes more than the home is worth. Closing costs and an upfront FHA mortgage insurance premium apply. Not a commitment to lend. These materials are not from HUD or FHA and are not approved by HUD or a government agency.
Also called: a HECM for Purchase, a reverse mortgage used to buy a home.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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